Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, March 12, 2021

Article Excerpt

CMC MATERIALS INC., $169.15, symbol CCMP on Nasdaq, is a leading supplier of high-performance polishing slurries used in the manufacture of semiconductors; the process is called chemical mechanical planarization. This is a polishing process used by computer chip manufacturers to planarize (flatten or smooth) many of the multiple insulating materials used in chipmaking. CMC Materials also sells various chemicals used by energy pipeline customers. These are chemicals (specifically, drag-reducing agents) used for transporting fuel through pipelines. The company operates from 35 locations around the world, with approximately 2,200 employees. It changed its name from Cabot Microelectronics Corporation on October 1, 2020. On March 1, 2021, CMC announced the acquisition of International Test Solutions Inc. (ITS), a designer and producer of high-performance consumables used in testing processes by semiconductor companies. CMC will pay $125 million in cash for Reno, Nevada-based ITS. In the quarter ended December 31, 2020, the company’s overall revenues increased by 1.7%, to $287.9 million from $283.1 million a year earlier. Sales…